Hubei Huangshi Modern Tram Project (the Project) was proposed to address the above challenges through the construction of a modern tram network with a total length of approximately 28.5 km. The components of the proposed Project included: i) laying of tracks, construction of stations and installation of associated facilities for the tram network; ii) procurement of rolling stock; and iii) consultancy support for commissioning, preparation of an O&M plan, capacity building and project management.

The Project’s objectives were to i) promote a modal shift from private vehicles to public transport, thereby reducing road congestion; and ii) improve connectivity between the new town and the old town. The Project also aimed to reduce travel time and carbon emissions, while improving road safety and a comfortable travelling experience for the commuters.

The planned output included the construction of approximately 28.5 km length of intelligent transport systems based modern tram network, to be serviced by 32 energy efficient modern trams.

Upon completion, the 28.5 km tram line was successfully constructed, and the number of trams was optimized to 30. In 2024, the tram system recorded 4.76 million annual passenger trips, achieved an average travel time saving of 10 minutes per trip along the project corridor, and contributed to an annual reduction of 982 tonnes of carbon emissions.

The Project was implemented in less than four years. Huangshi Railway Construction and Investment Company Limited (HRCIC) was the Project Implementation Agency. Procurement was conducted in compliance with the national law and regulations, and NDB’s procurement policy.

The positive impacts of the Project include: i) reduced greenhouse gas emissions and air pollution; ii) reduced travel time for commuters and visitors; iii) reduced traffic congestions; iv) enhanced transport safety and comfort of travel; v) reduced fuel consumption and vehicle operating cost; vi) improved mobility and accessibility for the local residents and visitors; vii) improved quality of living for the connected population. The Project was Category “B” in line with NDB’s Environment and Social Framework (ESF) and China’s environmental impact assessment regulations. Main environmental and social (E&S) impacts included land acquisition and resettlement, wetland habitats and scenic areas, and waste generation and disposal. These impacts were mitigated by adhering to the requirements of Chinese E&S regulations.

The total cost of the Project at completion amounted to RMB 3,624 million. The NDB financed RMB 2,414 million or 67% of the total cost. The remaining balance was financed by counterpart funds from the People’s Government of Huangshi Municipality (GOHM) and HRCIC.